Delaware: premium trust account rules
What Delaware requires of insurance producers holding premium funds, and what happens when those funds are diverted.
Citation
18 Del.C. §§ 1706; 1712
Source chart last reviewed this jurisdiction: 2/25
What the jurisdiction requires
All premiums shall be held in a fiduciary capacity and be accounted for by the producer.
Penalties for diversion
The commissioner may place on probation, suspend, revoke or refuse to renew or issue a producer’s license if he or she is determined to be improperly withholding, misappropriating or converting any moneys or properties received in the course of doing business. In addition to or in lieu of suspension or revocation, the commissioner may also impose a monetary fine between $200 and $20,000 per violation.
This reference is not legal advice. Citations and summaries are transcribed from the NAIC's Fiduciary Responsibilities—Premiums chart (Spring 2025) and reflect that chart's own review dates, which vary by jurisdiction. Statutes change, and the chart may lag the current code. Confirm the current text of any provision with the jurisdiction's insurance department or your own counsel before relying on it.
Tie out a Delaware trust account
Tie your premium trust account out three ways — bank, ledger and what you owe — with Delaware's cited rule beside the worksheet. Runs in your browser; nothing is uploaded.
Trust account reconciliation worksheetKeep your trust account provably in balance
Policy Balance Hub tracks premium held in trust against what you owe each carrier, so the reconciliation an examiner asks for already exists.